As we have noted here recently the HARP 2.0 program is now up and running. A few authorized lenders are fully embracing the new program but most lenders/banks are either ignoring HARP 2.0 or only partially implementing it. (Contact us in the sidebar to be connected with an authorized lender that is fully implementing HARP 2.0).
As the HARP 2.0 program has gotten under way it has become evident that borrowers who currently have Fannie Mae loans have been getting appraisal waivers more often than borrowers who have Freddie Mac loans. The way the process works is the authorized bank inputs the loan details in the the Fannie or Freddie preliminary underwriting software and that software comes back with results, including preliminary approvals or denials and results on whether appraisals will be required or not. Early reports from participating lenders indicate that the Fannie Mae software has been waiving the appraisal more often than not. The Freddie Mac underwriting software has been much more likely to require an appraisal as part of the refinance process. There are rumors that the Freddie software will be getting an update and it will be easier to get an appraisal waiver with Freddie loans soon too but time will tell.
Of course in the end the appraisal is mostly an inconvenience because the HARP 2.0 program when fully implemented allows for refinances no matter how low the appraisal comes in. Still, avoiding the appraisal makes the refinance process go faster and saves borrowers a few hundreds dollars up front.
If you have an conventional loan backed by Fannie Mae or Freddie Mac (see here to check) and would like to learn more about the HARP 2.0 program or to be connected with a fully participating authorized lender/bank contact us in the sidebar.